Section 1031 Real Property Like-Kind Exchanges

Overview

With the increased interest in single family homes as investments, more and more professionals are finding themselves involved in Section 1031 transactions. Section 1031 of the Internal Revenue Code provides a tax-deferral mechanism that allows investors to accumulate wealth from certain types of real property exchanges. By precisely following the Section 1031 rules, a taxpayer can dispose of an appreciated asset without owing immediate capital gains tax. Under Section 1031 rules, the investor can roll the entire proceeds-including the gain-into like-kind real property. This course provides an explanation of who, what, where, when, and how such a tax-deferred exchange is accomplished.

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Objectives

  • Define basic tax concepts such as like-kind property, basis, capital gain, realized gain, recognized gain, and boot
  • Explain the benefits of a tax-deferral under Section 1031
  • Demonstrate an understanding of the terminology in Section 1031 such as exchanger, original (relinquished) property, replacement property, and qualified intermediary
  • Give examples of the types of property eligible for 1031 exchanges
  • Summarize the strict IRS timing deadlines

Tax Year: 2023-2024

Designed For:

CPAs, EAs, real estate, tax, CFP, and other financial professionals


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Course Information

Adding additional credit may change exam requirements.

Prerequisites:
Basic federal tax concepts and rules related to capital gains and losses, realized versus recognized gain, basis, and boot.
Advanced Preparation: None